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cypher007

House Prices Hong Kong Style

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ive been looking at the situation in HK, and to be honest its not that different to ours. they have a net imigration from China, both wealthy tourists and people trying for a better life, ok so we dont have wealthy tourists from eastern europe pushing up our inflation but you get the picture. they have a shortage, designed by the government to keep property prices high, of government subsidised flats. all this is leading to some crazy stats. one guy on a BBC show about HK was earning just over the HK average earnings level, having to support his family, and a mortgage on their small flat of 11x his anual income.

while here ive seen apartments of 600sqft running at about $10,000 to $12,000 HKD or about a grand a month rent.

one thing though it seems acording to my brother in law that the HK mortgage interest rates are going up soon, which he said will bring prices down next year. the current mortgage rate is about 2-3%.

another thing ive noticed since the crash is that its no longer worth buying electronic goods here as there as expensive as in the UK, or maybe that because the pound is worth bugger all now.

something to amaze you as well is that theyve only just set a minimum wage over here, of $28 HKD or about 2.24 an hour, and theres alot of small business owners bitching that theyll have to lay people off. to be honest i dont know how people live here, im supprised there arnt cardboard cities everywhere.

Edited by cypher007

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Some of those things are true, some of them are not:

Electronics you save the VAT and lower corporation taxes. Recent purchases over there were an Acer which was about £70 cheaper.

Rent is semi true.

If you live in the white ghettos, tung chung, mid levels, Wanchai, Olympic and austin, expect to get gouged like crazy. Live in villages in the NT and it is substantially cheaper.

The thing is though over 50% of the population live in council housing, whenever a new construction occurs the government demands X number of council flats are built and given to the government strictly rent controlled.

Min wage though is actually quite high $28, in that if you divided pay vs hours worked it was often about $8 or less. But then again when you see $28 min wage you have to consider this, on $28 an hour you'll pay no taxes. Because there is no VAT everything is cheaper, so it is not directly comparable.

For instance you travel in London or Manchester on the tube or metro, you pay £5 for a ticket. I've never paid more than $15.2 for a train journey in HK.

But you're right there are many problems there, a iffy one is that the national school curiculum in 2013 is to have patriotism lessons so HK people love the mainland.

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im supprised there arnt cardboard cities everywhere.

There were tons of shanty towns in the 1950s-1990s. They've been torn down and the residents rehoused in council houses. Go north to Fanling and Sheung Shui, you will see massive Y shaped tower blocks (which you can easily BASE jump off). Off the MTR and a short bus trip there is pretty much a city Wah Ming estate is one of many

http://maps.google.co.uk/maps?hl=en&client=firefox-a&ie=UTF8&q=hong+kong+fanling+Wah+Ming+Estate&fb=1&gl=uk&hq=hong+kong+fanling+Wah+Ming+Estate&hnear=hong+kong+fanling+Wah+Ming+Estate&cid=0,0,15935174046180857111&ll=22.484803,114.137564&spn=0.00916,0.021973&z=16&layer=c&cbll=22.484106,114.140117&panoid=rShbldCdnb_RbLzsZ7W8xA&cbp=12,221.12,,0,-67.5

Have a look around.

Edit forgot to mention, there are also less pleasant elements called cage homes as well in Sham Shui po. AND there are shanty towns and cardboard cities, slightly out of sight though. Visit the Masterpiece and you can look atop of many buildings all the way up to Mong Kok, use some binoculars and you can see mini shanty towns built atop of old buildings.

Edited by ken_ichikawa

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I've been to HK a few times - got some family out there. I think the people learn to become hustlers. Doing whatever they can to make money because they have to.

In loads of the shops you get VERY pushy sales people, and you see a fair bit of questionable marketing that literally wouldn't work in the UK. For example, I remember seeing a product advertised as Buy one get one free for HK$250 at one end at the shop, then advertised as being HK$175 each at the other end of the shop.

You may also notice lots of elderly people foraging for goods that can be recycled on the streets. You often see them walking around in the evening with mounds of cardboard strapped to themselves.

And if you go out at say 4am, when the bin lorries are doing the rounds, you'll see disabled people and people with obvious special needs running after the bin lorries desperately helping the bin men to move the rubbish. It's quite shocking to see, and I don't know if these guys are on the full payroll of the bin collectors, or if the bin men were just slinging them a few bob for helping.

I think you can live in HK for cheap if you need to. I'll bet some of the poorest live in horrifically cramped living conditions. You can deffo eat for very very cheap if you know where to go and know a bit of Cantonese.

Lets not forget all the guys selling fake watches on the streets, and all of the guys selling second rate computer hardware at inflated prices.

Edited by Superted187

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And like Ken said, transport in HK is very cheap. You can get a tram from one end of Hong Kong Island to the other for about 25p

yeah but you can probably bike from one side to the other in about 15 mins.

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yeah but you can probably bike from one side to the other in about 15 mins.

You can't, there is a semi famous cyclist who has been cycling from Kam Tin to Kennedy town for the past 10 years, it takes him 90 minutes each way.

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You can't, there is a semi famous cyclist who has been cycling from Kam Tin to Kennedy town for the past 10 years, it takes him 90 minutes each way.

relatively speaking. its is only what, about 4-6 miles across.

Edited by mfp123

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my wife is from Shatin, its where we're staying at the moment. on the price of goods i was mainly looking at the price of computer parts in Sham Shui Po's Computer Shopping Centre, as this seemed the cheapest place over the years, and yes i used to save the VAT but not any more, and not really for about the last three years. i will probably buy some card readers and maybe some Microsd cards, which seem cheaper than the UK, buts thats about it. people here are blaming the inflation on mainland tourists. another example is the Panasonic TZ20 or ZS10 as its called here, in the UK i can buy it online for about 265 here in HK the cheapest ive seen it is about 275.

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relatively speaking. its is only what, about 4-6 miles across.

Sure but that doesn't mean you can travel line of sight, there are hills in the way which you have to go round.

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my wife is from Shatin, its where we're staying at the moment. on the price of goods i was mainly looking at the price of computer parts in Sham Shui Po's Computer Shopping Centre, as this seemed the cheapest place over the years, and yes i used to save the VAT but not any more, and not really for about the last three years. i will probably buy some card readers and maybe some Microsd cards, which seem cheaper than the UK, buts thats about it. people here are blaming the inflation on mainland tourists. another example is the Panasonic TZ20 or ZS10 as its called here, in the UK i can buy it online for about 265 here in HK the cheapest ive seen it is about 275.

That would be to do with the pegging with the US$, 3-5 years time I think they'll depeg tbh.

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Not posted here for a while, as I escaped to Hong Kong about six months ago. I'd kind of forgotten what it's like to read about the doom and gloom every day.

House prices are spiralling at the moment, mainly due to wealth pouring over the border from the mainland. Rents are also increasing, but not at the same rate as prices, so the already miserable rental yields are going to fall further. Social housing is provided for what i believe is something like 1-2k HKD a month.

Apart from the house price speculation, pretty much every aspect of life here is better than the UK. I can't see myself going back for a looong time. I pay the same here for good sized 2 bed apartment in a smart complex with pool/gym etc, as I did for a 1 bed in a shitty old building in West London.

I have a 20 minute commute to work, on a spotlessly clean, efficient transport network, with trains *every* 2 minutes, that costs me about 40 pence each way.

Income tax is 15%, but your rent is tax deductable....go figure.

Crime is essentially non-existent, you can walk the streets any time of night without worrying about gangs of yoofs and the like.

Jobs are plentiful and well-paid in the international industries (finance, trade, manufacturing, design etc)

Last year the government ran a 70billion HKD surplus, and is paying it back to every resident.

I can jump on a bus (15 pence) and be in a country park with miles of hiking trails and numerous beaches in 30 minutes. Numerous outlying islands are a short ferry trip away.

Flights to Thailand etc are less than 100GBP return.

Sure life is different if you're a local workig in the service industry, but on the whole, life is pretty good here. Btw I'm not one of the expat types that live in a little bubble in mid-levels and never leave Central, I live in Kowloon and work in New Territories, so do see a decent slice of HK life!

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I don't buy the line about goods being expensive either. Sure if you go into tourist traps like Nathan Road and pay sticker price, you'll get ripped off, especially as a westerner.

You just need to not shop in tourist areas, and be prepared to haggle.

For what it's worth, goods from the Apple Store are about 20% cheaper than UK prices, across the board.

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my wife is from Shatin, its where we're staying at the moment. on the price of goods i was mainly looking at the price of computer parts in Sham Shui Po's Computer Shopping Centre, as this seemed the cheapest place over the years, and yes i used to save the VAT but not any more, and not really for about the last three years. i will probably buy some card readers and maybe some Microsd cards, which seem cheaper than the UK, buts thats about it. people here are blaming the inflation on mainland tourists. another example is the Panasonic TZ20 or ZS10 as its called here, in the UK i can buy it online for about 265 here in HK the cheapest ive seen it is about 275.

Give it a bit of time and the prices will flow through to the UK market - inflation in the pipeline affecting the nearest/biggest volume outlets first before cheaper stock is depleted.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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